Terrorism insurance bill protects commercial real estate market

WASHINGTON – Aug. 3, 2007 – Reauthorization of the federal government’s terrorism risk insurance program will help maintain a strong commercial real estate market and the health of the nation’s economy, according to the National Association of Realtors® (NAR).

NAR supports extension of the present terrorism insurance, set to expire at the end of this year, and commended passage of the Terrorism Risk Insurance Revision Extension Act (H.R. 2761) by the House Financial Services Committee on Wednesday.

“If the legislation is not implemented quickly, the potential unavailability of terrorism risk insurance would have a great impact on many commercial financing agreements and would negatively impact the commercial real estate market,” said NAR President Pat V. Combs.

H.R. 2761 would extend for 15 years the terrorism insurance program that was initiated after the September 11, 2001, terrorist attacks; make available coverage for nuclear, biological, chemical or radiological (NBCR) attacks; require the Treasury Department to report on the terrorism insurance market every two years, including an analysis of terrorism insurance pricing impacts on commercial real estate; and establish a blue ribbon commission tasked with recommending a long-term private market solution.

“Today’s vote recognizes that, since Congress enacted the Terrorism Risk Insurance Act in 2002, the essential facts have not changed,” Combs said. “Terrorism continues to be an unpredictable threat. The reauthorization of TRIA will strengthen the economic security of the commercial real estate market by reducing the uncertainty of terrorism coverage availability, and by covering most conceivable forms of terrorist activity.”

“NAR has worked with members of Congress to not only implement this bill, but also to include a commercial real estate professional on the blue ribbon commission. This is important to the market and to all of our commercial members because it ensures the industry a voice at the table. We are especially thankful to Congressmen Gregory Meeks (D-N.Y.) and Paul Kanjorski (D-Pa.) for their support and understanding of the importance of the commercial real estate industry and the need to find a long-term solution,” Combs said.

© 2007 FLORIDA ASSOCIATION OF REALTORS

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